Waelzholz expands production capacity in Brazil
German cold-roller group Waelzholz is installing a new four-high reversing mill and a two-base bell annealing furnace at its Brazilian unit Waelzholz Brasmetal.
In addition, the site in São Paulo is planning to install four more bell annealing furnaces, a slitting line, and a packaging line, Kallanish hears from the parent group. This expanded production capacity will mean an additional 33,000 tonnes/year of cold rolled steel strip
The four-high reversing mill and the two-base bell annealing furnace are scheduled to be up and running by May 2026. This investment alone will increase the Brazilian location’s production capacity by 11,000t/y.
The rolling mill, equipped with a twin-drive system, features digital drive and control technology. In addition, the roll gap control and strip tracking systems have been designed and optimised for rolling asymmetric thickness profiles, Waelzholz explains
The measures represent the largest single investment in the history of Waelzholz Brasmetal, the parent group notes. It sees them as a strategy also against tariffs and trade restrictions that are changing the global economic environment. To meet these challenges, it says it is investing specifically in the respective economic regions, as this allows to adapt production and logistics systems to local conditions.
Christian Koehl Germany
Italian plate prices rise amid improved order intakes
Italian heavy plate contract prices have continued to rise, with lead times extending further with demand strengthening during November and into December while import offers have largely disappeared from the market.
Two mill sources tell Kallanish that the previously estimated €50/tonne ($58.11/t) increase would likely be insufficient to cover the additional slab import costs generated by the Carbon Border Adjustment Mechanism.
Plate order intake is described as healthy, with lead times now stretching into January. Mills are currently asking €670/t for basic S275 plate, with a €35/t premium applied to S355 material. Contract prices for S275 are reported around €650/t ex-works. One source confirms that the €670/t level has been achieved, although only for small volumes, and is expected to consolidate in the coming weeks.
Mills are expected to push prices higher again in January. Producers initially asked €700/t ex-works for S275, but they are now recalculating their future offers in light of CBAM related slab costs, with further upward adjustments likely.
Imported slab into Italy is currently assessed at $510-520/t cfr, market participants note.
CBAM, the proposed melt-and-pour rule and new safeguard measures continue to create substantial market confusion.
Natalia Capra France
European steel HRC market drops slightly amid regulatory uncertainty, low trading appetite
“I expect movement in the coming weeks,” a distributor source in Northern Europe said, adding that both buyers and sellers were “delaying decisions” into the beginning of next year while they await more clarity from the market after the year-end holidays.
In Northern Europe, estimates of workable prices for HRC were heard at €610-625 ($709-727) per tonne ex-works, while an offer was heard around €630-635 per tonne ex-works.
No deals were heard during the day on Monday.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was €622.25 per tonne on Monday, down by €0.25 per tonne from €622.50 per tonne on December 5.
The index was up by €3.50 per tonne week on week and by €15.58 per tonne month on month.
Meanwhile, in Italy, a source said that the local market was “stalling” while it awaited “potential increases” to prices in the coming weeks.
No fresh deals were heard on Monday. Estimates of workable prices were heard within the range of €600-610 per tonne ex-works.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €611.25 per tonne on Monday, down by €2.08 per tonne from €613.33 per tonne on December 5.
The index was up by €7.84 per tonne week on week and by €15.25 per tonne month on month.
Assofermet: Urgent need for transitional CBAM measures to prevent instability in EU steel market
Assofermet, the Italian association representing companies in the steel, metals, scrap and hardware sectors, has submitted a formal request to the European Commission to address the growing uncertainty surrounding the application of the Carbon Border Adjustment Mechanism (CBAM) regulation on steel and aluminum imports, reiterating the need for transitional measures to safeguard the European supply chain.
The new communication, dated December 5, 2025, highlights that the absence of definitive parameters for calculating CBAM costs – benchmarks and default values, expected only in the first quarter of 2026 – is forcing operators and importers to plan procurement “blindly”, with potential impacts on the entire continental manufacturing sector.
According to the association, this lack of clarity makes it impossible to assess the actual cost of supplies scheduled for delivery in 2026, since related CBAM charges will only emerge in February 2027. This situation, Assofermet warns, is generating significant market instability for trade, distribution, service centers and producers that regularly purchase semi-finished and raw steel and aluminum products from non-EU countries, with potential ripple effects across the European steel chain and export-oriented processing industry.
To avoid such consequences, Assofermet proposes a temporary exemption from the obligation to purchase CBAM certificates for all steel and aluminum imports cleared from January 1, 2026, until five months after the publication of the definitive reference parameters. This request, already shared with Italy’s foreign affairs and industry ministries (MAECI and MIMIT), aims to secure a more balanced and sustainable initial phase of CBAM implementation, preventing distortions in purchasing decisions and operational challenges along the supply chain.
Assofermet has also reaffirmed its readiness to cooperate with European and national institutions to ensure a gradual and effective transition to the new regulatory framework, maintaining a balance between the EU’s environmental goals and the need to protect industrial competitiveness. The association stresses that, without corrective measures, the current regulatory scenario risks creating further instability for Europe’s production system, already under pressure from energy costs and procurement constraints.
LESS, producers back sliding scale approach for labelling
The Low Emission Steel Standard (LESS) has joined a consortium of European steel players to support a public statement backing the use of the sliding scale approach for the EU label for steel, Kallanish learns.
The 25 backers of the statement include large European steel producers, such as ArcelorMittal, Tata Steel, Thyssenkrupp, Dillinger and Voestalpine. This is in addition to Volvo, Climate Group, Steelwatch and Stegra.
The European Commission is expected to unveil an EU label for steel as part of the Industrial Accelerator Act, and as part of this, the group has called on the sliding scale to be adopted in order to drive real decarbonisation. The backers say this will “adopt a clear, credible, and technology-neutral framework”.
It says the approach is fair and effective, rewarding genuine emissions reductions across all production routes. It adds the sliding scale acknowledges the decarbonisation efforts of primary steel producers and offers a clear roadmap for steady improvement. It also recognises the limited availability of high-quality scrap and the need for both primary and secondary steel decarbonisation in Europe.
The approach, initially proposed by the International Energy Agency (IEA), has been adopted by ResponsibleSteel, LESS, and CISA for its frameworks.
The approach also prevents carbon leakage and ensures upstream Scope 3 emissions are accounted for, avoiding outsourcing of emissions. It is also market-ready and proven by LESS certifications, which classify steel products based on their specific emissions and scrap share.
The statement warns a footprint-only approach risks shifting emissions and jobs abroad. However, this stance is in contrast to a briefing by EU think-tank Sandbag, which says the sliding scale approach risks distorting incentives, overlooks product diversity, and undermines circularity. The organisation instead proposes an alternative method.
Carrie Bone UK
European steel prices hold flat as market awaits january shift
Despite the clarification of CBAM rules, demand across the European steel market remains subdued, leaving traditional supply–demand dynamics—rather than regulation—as the main driver of price movements.
In markets such as Germany and the Czech Republic, HRC prices are stuck in a narrow band of €605–615/t EXW. On the CRC and HDG side, rising energy costs continue to squeeze margins, and several mills remain hesitant to sell CRC altogether. In Germany, CRC is trading at €700–710/t, while HDG is hovering around €710–730/t.
Italy: HRC Eases Further as Demand Remains Weak
In Italy, hot-rolled coil prices have softened to €580–600/t EXW, with sluggish spot activity throughout December exerting additional downward pressure. Interest in green steel remains muted, with only limited-volume purchases observed. For CRC and HDG, producers are attempting to hold levels at €700–720/t, but weak domestic demand is challenging the sustainability of these prices. A similar trend persists in long products, where rebar is assessed at €540–570/t EXW and wire rod at €580–600/t CPT.
Northwest Europe: Market Stabilizes at €600–620/t as Mills Target €620–660/t for January
In Northwest Europe, the tight balance between supply and demand continues. HRC transactions largely remain concentrated around €600–620/t EXW. Producers and trading sources report that, with CBAM now fully clarified, January 2026 HRC offers are expected to gradually shift into the €620–660/t range. Several key factors underpin this expectation.
First, the formal implementation of CBAM has significantly increased the cost of imports, reducing the competitiveness of both Asian and non-EU suppliers and making EU-based production comparatively more attractive. At the same time, many European service centers, having deliberately run down inventories towards year-end, will be required to restock in January. This seasonal replenishment is expected to create upward pressure on domestic prices.
Higher energy and logistics costs relative to late-year levels are also lifting producers’ cost base, reinforcing their higher price targets. Meanwhile, the diminishing appeal of imports—particularly from countries facing heavy CBAM liabilities—continues to push buyers toward European mills, providing an additional layer of price support.
Although these factors collectively point toward a mild upward trend, market sentiment remains cautious. Whether levels above €650/t can be sustained will depend largely on the strength of demand recovery in early January. The extent to which buyers engage in aggressive restocking will ultimately determine the market’s real direction.
Market Direction to Be Set in January 2026
While CBAM rules have now been fully established, the market has yet to find a decisive direction. Prices remain mostly flat, with slight downward variations across certain regions. Demand is still weak, and buyers are reluctant to take on additional risk ahead of the January transition.
The anticipated turning point is expected in the first days of 2026. As CBAM begins to translate into real, on-the-ground cost structures, its impact on price levels and trade flows will become clearer. From that point onward, the direction of the European steel market will depend less on regulatory uncertainty and more on the interaction between demand, costs and the new import dynamics—an interplay that will only fully reveal itself once January gets underway.
Germany urges EU to boost low-emission steel use in automotive sector
Germany has called on the European Union to significantly increase the use of low-emission steel in automotive manufacturing, as part of a broader effort to align industrial policy with Europe’s climate-neutral objectives. In a joint letter to European Commission President Ursula von der Leyen, 11 German state premiers have urged the Commission to establish regulatory coherence between the steel and automotive sectors.
Clean steel as a foundation for Europe’s industrial and climate future
Kerstin Maria Rippel, CEO of the German Steel Federation (WV Stahl), welcomed the move, underscoring that low-emission steel production in Germany and across the EU is essential for protecting the continent’s industrial base while driving the transition to climate neutrality.
She stressed that market-based incentives along the entire value chain, starting with basic materials, are required to ensure competitiveness and support long-term investment in clean technologies.
Crediting low-emission steel in fleet targets seen as key policy tool
Rippel highlighted one policy mechanism with significant potential: allowing automotive manufacturers to credit verified carbon reductions achieved through certified low-emission steel toward their EU fleet emissions targets. Such an approach would reinforce industrial value creation, enhance competitiveness, and support climate protection simultaneously, she added.
The steel industry, Rippel emphasized, is ready to contribute to this transition but requires a regulatory framework that supports large-scale investment and tightly integrates the strategies of the steel and automotive sectors.
EU home appliance manufacturers warn against safeguard proposal
The European Commission’s proposed steel safeguard replacement measure is likely to exacerbate the declining share of EU-produced appliances in total EU sales, as EU plants close and capacity in and imports from third countries grow, warns APPLiA, the association representing home appliance manufacturers in Europe.
The association’s members produce nearly 65 million large appliances directly within the EU annually. While the European large household appliances market has expanded since 2021, the share of EU-produced appliances in total EU sales fell by 5% in 2024, it notes.
“The safeguards as envisioned in the Commission’s proposal risk creating shortages of certain types of steel, thereby increasing production costs and negatively affecting industry competitiveness,” the association says in a note seen by Kallanish. “While presented as a general safeguard, the proposals impacts are uneven. It places strong emphasis on supporting the European steel producers with almost no consideration of the negative impact on downstream manufacturers.”
At current capacity, European steel production cannot meet domestic demand at a competitive price. Steel accounts for 46% of the materials in association members’ products and “creating artificial scarcity” will significantly cause an increase in primary production costs, it continues.
APPLiA suggests maintaining the current out-of-quota duties; administering quotas on a yearly basis and reintroducing a carry-over mechanism; improving transparency on quota allocation; and ensuring adequate quotas for steel categories which are not manufactured in sufficient volumes in the EU. It also suggests reviewing the measure on an annual basis, using criteria tied to quota exhaustion, supply-chain impact, and downstream harm.
Lastly, it warns the melt-and-pour rule will introduce administrative and financial burdens and supply chain uncertainty atop already tight quotas.
Pauline Weinzierl, head of trade and industrial policy at Directorate E of the European Commission’s Directorate-
Adam Smith Austria
Knauf Interfer reorganises steel activities
German distribution group Knauf Interfer has reorganised its Steel business unit with a new structure and significant investments, it tells Kallanish.
In future, the Steel unit will be divided into the Steel Service and Functional Metals subdivisions. The Steel Service division will bundle the activities and logistics capacities of the steel service centres, the blanking plant and the Benelux sales office. Production and finishing of cold-rolled strip will be bundled in the Functional Metals division.
Among its processing and finishing services, Knauf highlights multi-layer surface coating, in which it applies several layers of different metal coatings to the surface of strip steel. This allows it to combine the advantages of different metal coatings, Knauf explains.
It also offers selective finishing, a process to selectively coat certain areas of the steel strip while leaving other areas untreated. With its blanking line and other machinery, the Steel unit is also capable of manufacturing complex products, the company notes.
Parallel to the organisational realignment, Knauf Interfer has initiated investment in the Steel unit. In August, extensive expansion and new construction work was started at the Delta Stahl plant in Barsinghausen, Germany. In May, Knauf expanded the portfolio in strip finishing through the integration of the H. D. Lenzen Group.
“In the long term, the importance of distribution, including in-house procurement, warehousing, processing and logistics, will continue to grow for national and international supply chains,” says group chief operating officer Domenico Marino.
Christian Koehl Germany
EC clears Metinvest’s takeover of ArcelorMittal Tubular Products lasi
The European Commission has announced that it has approved Ukrainian steel and mining group Metinvest’s takeover of Romania-based ArcelorMittal Tubular Products Iasi S.A. (AMTP Iasi).
The Ukrainian steel and mining group had applied for the acquisition in October this year, as previously reported by SteelOrbis.
No competition risks in tube segment
The transaction involves Metinvest gaining sole control over AMTP Iasi, a Romanian producer of small welded carbon steel tubes. After examining the companies’ combined market presence in the relevant product segments, the Commission concluded that the merger would not significantly impede competition.